Does anyone out there understand the best thing to do right now? I have calls in to our money guys, but I'm wondering if it is best to keep things where they are (we have no stocks, just mutual funds and college funds and SEP IRAs) or move it into treasury bonds and/or gold. I find it all very disheartening and am wondering if stuffing money in the mattress is not such a bad idea.
On the other hand, it is heartening news to see the turn in the polls! I saw a video of McCain last night and when he was asked about the economy he froze, then took a long sip of his coffee, shifted in his chair, looked horrified and said his "the fundamentals are sound" sound bite again. Remember, in the Great Depression, it was a Democrat who got us out of this mess.
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I'm curious to see if you get any informed comments here. I'm NOT an expert (far from it), but I remember talking to an expert after the '87 crash and he said, "don't touch anything if you don't have to." His theory was that while individual stocks and companies had taken a beating, the market in general would survive - and in 10 or 20 years, everything would be back up, pretty much. He was right (even now the market is better than it was then). A friend's husband worked for Bear Stearns (now works for JP Morgan) NOT as a big-deal trader but as a lower level guy and I just hope he's ok (as it is, he's gotten more work for less pay, but he's glad to have the job).
Caroline:
I agree with Clea. The best thing to do is to stay where you are until the market recovers its losses.
Some mutual funds, like Fidelity, give you the option of transferring money from one fund to another that is better suited to the current market conditions. There is usually a slight fee to do this.
Again, the key is "Don't Panic." (re-read "The Hitchhikers Guide to the Universe" for in-depth advice on this subject.)
Yep, just had a long talk with our money guys. We're in diversified funds, and some of it is guaranteed, at least with the principal. He did say it might be a good idea to put money for now into a money market or CD and let the funds come back.
So I guess I don't have to slice open the mattress just yet!
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